They would do better if, like the new ES, they sold the hybrid as the entry level model and made a non hybrid diesel/petrol engined model available. A little hot Lexus F-model hatch would sell in greater numbers than a model with only one engine choice with no real leg to stand on against the German competition.

The problem is the badge. Plenty will pay for a BMW badge with a small car attached but few will pay for one that looks like 2 pieces of toilet paper covering 2 turds in a toilet bowl. The badge even has the toilet bowl shape of Toyota's!

The biggest problem for the CT200h is that it's rubbish! It offers only a hybrid drivetrain, not the small petrol, small diesel, larger petrol, hot petrol and really hot petrol of rivals like the 1-Series and A3. It doesn't drive well. It looks horrible. Cars of this class drive well and are meant to be fun, the CT200h is anything but. Lexus give it a bigger engine/more power, a complete styling overhaul, a manual, make it drive better than a Prius and then it might sell more.

It's a tough sell; Lexus is traditionally a luxury brand with some sporty aspects. They also generally eschew economy in the name of comfort and power.

Then there's their outlier car - the CT200h. It is modeled to look and feel like a Lexus, but ends up falling somewhere closer to a well trimmed Prius. It isn't sporty or as luxurious as the other Lexus' and costs more than the more frugal Prius.

Lexus needs to take the CT200h and modify it so the economy is only a tiny fraction of a percent behind the Prius while retaining the acceptable styling in my opinion. This car is designed to appeal to younger buyers who appreciate Lexus quality and want to get in on the brand but for whom frugality is equally important.